NEW DELHI: The Nifty on Friday ended flat to form an indecisive candle on the daily chart.
On weekly charts, a clearer pattern emerged with a Hammer formation, signalling emergence of buying at lows.Usually, this kind of formations shall have bullish connotations for the near term, but a confirmation in this regard will come once the Nifty50 gets past 10,808 levels.
In such a scenario, the initial target will be around 10,930, the breach of which on a closing basis shall further cement the momentum, said Mazhar Mohammad of Chartviewindia.in.For the day, the index ended marginally higher by 1.80 points, or 0.02 per cent, to 10,791.65.
During the session, the index saw selling at 10,800 level, but managed to defend the support of 10,750 level.Given the current set-up, the index has potential to rally towards its 200-DMA of 10,861 and possibly 10,915 over the next few days, said Arun Kumar, Market Strategist at Reliance Securities.For any further rise, said Chandan Taparia of Motilal Oswal Securities, the index needs to hold above 10,750 zones.
It's staring at resistance at 10,820 and 10,888 while the index may find support at 10,680 level, Taparia said.Mohammad said a close below 10,721 may bring selling pressure and advised traders to take profit in long positions if the index were to close below the level.